Substitute Goods

Q.

A want becomes a demand only when it is backed by the _________.

1. A necessity to purchase the product or commodity.

2. The desire to purchase or buy the product or commodity.

3. Utility of a product.

4. Ability to buy.

Q.

State whether the following statement is true or false. ‘The demand for a commodity always increases with increase in the prices of other goods’.

Q. An increase in the price of a commodity when demand is inelastic, causes the total expenditure of the consumers of the commodity to _______.

1. decrease
2. any of the above
3. increase
4. remain unchanged

Q. Cross elasticity of complementary goods is _______.

1. negative
2. zero
3. high
4. infinite

Q. Match the items of List - I with those of List - II and indicate the correct code :

Q. If the goods are complementary like car and petrol, their cross elasticity is ____________.

1. Zero
2. Negative
3. Positive
4. Infinite